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London

JLL: The prime West London and Thames Valley office markets will be robust post-Brexit

The region’s global connectivity will be key to its stability and future growth


London, 15 September 2016 – JLL’s annual West London and Thames Valley office market seminar has today predicted a robust outlook, as a result of the region’s global connections and clustering of growth sectors.

Despite market uncertainty post Brexit, JLL data shows that the West London and Thames Valley office market is well placed to benefit from its diverse occupier base with US and UK occupier parentage, making up 38% and 33% of the take-up respectively.

James Finnis, head of South East Office Agency at JLL said: “Whilst take-up levels of office space are low and will remain slow for the balance of 2016 and into 2017 the West London and Thames Valley offer is strong. It has a good selection of high quality speculative developments, a highly educated mobile demographic, powerful clusters of growth sectors and global connectivity via two international airports, which has made it a popular location for companies from around the world. The resulting diverse occupier base means that the region is less exposed to macro-economic political issues and as such is in a robust position to weather the current uncertainty in the UK.

“Infrastructure developments such as the impending Elizabeth Line, the M4 becoming a Smart motorway and in due course the Western Rail Link to Heathrow will prove increasingly attractive with occupiers, as are the regions’ lower total occupational costs when compared to Central London.”

The lack of exposure to the EU is also predominant in the region’s office investment market, with this year’s most high profile deals coming from Asian, Australian and Middle Eastern capital.

Angus Minford, director, South East Office Investment at JLL said: “There has been a significant reduction in the number of transactions due to Brexit, notably in Q2. However, the South East has still witnessed favourable transaction volumes largely due to global capital sources, which is a signal of confidence in the region going forward.

“Key drivers of investor interest revolve around lease and covenant opportunities as well as permitted development opportunities.”